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Real Estate Financial Modeling Accelerator (Updated October 2024)

Prior to launching the Accelerator program, Michael and I fielded email after email requesting a more structured real estate financial modeling training program on the site. Over the years, we've covered hundreds of real estate modeling…

Multiple on Invested Capital

Another term used for Equity Multiple. See MOIC, or Equity Multiple.

MOIC

Abbreviation for Multiple on Invested Capital, which is another term used for Equity Multiple. See Equity Multiple for the definition.

Lock Out Period

See Lock Out

Lock Out

A common clause in a CRE loan agreement. This is the period of time after disbursement that a borrower is not allowed to prepay the loan. Lenders will many times enforce a lock out period along with prepayment penalties after the lock out period…

FAR

See Floor Area Ratio

DCF

See Discounted Cash Flow

DST

See Delaware Statutory Trust

BOMA

See Building Owners and Managers Association

Operating Supplies and Equipment

See OS&E

Furniture, Fixtures, and Equipment

See FF&E

ADR

See Average Daily Rate.

RevPAR

See Revenue Per Available Room

Purchase and Sale Agreement

A legally binding contract between a buyer and seller that outlines the terms and conditions of selling a property.

PSA

See 'Purchase and Sale Agreement'.

Specific Performance

A legal concept that requires a party to abide by the terms of an agreement. A simple example can be if a PSA is executed and then the seller decides not to sell the land. The buyer can sue for Specific Performance and a court can enforce…